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Opportunities and challenges in developing markets for energy service companies (ESCOs) to promote energy efficiency programs in Indonesia”
Thesis   Open access

Opportunities and challenges in developing markets for energy service companies (ESCOs) to promote energy efficiency programs in Indonesia”

. Nurcahyanto
Masters by Coursework, Murdoch University
2017
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Abstract

It is predicted that between 2004 and 2030, around 80% of the world’s economic growth will be contributed by non-OECD countries (Ellis 2009). Energy Service Companies (ESCOs), could play a vital role in improving energy efficiency in these countries. ESCOs can help energy users, companies, industries, and commercial sectors in improving the efficiency of equipment by providing energy service (energy performance and/or credit risk). ESCOs were implemented quite successfully for promoting energy efficiency (EE) in many European Union (EU) countries and other developed countries such as the USA, Canada, and Japan. However, not many developing countries run ESCO successfully. This raised the question of potential barriers for using ESCO for EE programs in developing countries. To successfully implement and operate ESCO in developing countries like Indonesia, it is crucial to study and understand the opportunities and challenges encountered in running this program. The aims/objectives of this study are to understand and verify the strengths, weaknesses, opportunities and threats of developing markets for Energy Service Companies (ESCOs) in Indonesia. This will be achieved by surveying the key stakeholders in the industry and identifying significant factors such as regulatory, financial, and awareness aspects for decision makers (governments). The results from this research will aim to provide recommendations for the decision makers, who can then review the significant factors that influence the development of ESCO in Indonesia.

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